The change comes at a time when the company is engaged in a tussle with its former employees regarding non-payment of pensions.

The revised terms and conditions of the company state: "You will be eligible for membership of the Britannia Industries Limited Management Staff Provident Fund and Britannia Industries Limited Non-Covenanted Staff Gratuity Fund.

"However, you will not be covered under the Britannia Industries Limited Officers' Pension Fund."

In lieu of the same, an amount equivalent to 15 per cent of the employee's basic salary, which would have been deposited in the pension fund, will be paid to them as a variable allowance.

The company further states, "If the company decides to cover you under any pension fund in future, this amount will be discontinued and contributed to the pension fund as per applicable rules."

"Salary structures are an internal matter between the company and the employee," a Britannia spokesperson said.

Britannia is currently in discussions with its former employees, who are represented by the Britannia Industries Pensioners' Welfare Association regarding the non-payment of pensions to those employees who retired after March 2003.

The company, earlier this month, had given "an ex-gratia" offer to the PWA to meet the shortfall in the proposed pension. This offer, however, was rejected by the PWA members, who are seeking payment through LIC [Get Quote] Annuity.

The pensioners have also filed a complaint at the Institute of Chartered Accountants of India against the company's former auditors CC Choksi and Co for endorsing a transaction through which Britannia withdrew money from the pension fund in the financial year 2003-04.

The members have also filed cases on three grounds -- non-payment of pension according to fund rules; stoppage of triennial pension adjustment from 2004 according to the terms of service conditions and against making any adverse changes in Pension Fund rules -- in the Madras high court and the Calcutta high court respectively.

The Madras high court had granted an interim injunction against making such changes.